Megaupload Shutdown Hit Small-Budget Films, Study Says

By

Riva Gold

Aug 28, 2013 12:10 am ET

Associated Press

Megaupload’s shutdown may have helped big-budget movies, but it also hurt smaller films at the box office, according to a newly updated study.

The researchers, based at Ludwig Maximilian University of Munich and the Copenhagen Business School, found that while the closure had a minor positive impact on box office revenues for huge blockbusters, it also slightly decreased revenues for mid-sized and smaller-budget films, casting doubt on industry arguments that online piracy significantly lowers filmmakers’ revenues.

The study’s authors weren’t certain what caused this finding but believe it may involve “social network effects,” where online piracy actually helped ticket sales by spreading information about the films through word-of-mouth.

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